Mr Ernest Awuah - Collateral Registry (BOG)

The Bank Of Ghana is entreating all lenders to endeavour to register all property used as collateral by borrowers with them at the Collateral Registry department of the Central Bank.

 Mr Ernest Awuah, an officer with the Collateral Registry has hinted that universal banks, savings banks, licensed microfinance, money lenders, secured creditors are enjoined to register such properties registry under the section 21 of the Borrowers and Lenders Act 2008 (Act 773) to avoid any violation and punishment.

 Speaking at a training workshop for journalists on Financial Literacy at Tamale organised by Frankfurt School of Finance & Management (FS) in collaboration with the IFC/World Bank Group, with funding from State Secretariat for Economic Affairs SECO, Mr Awuah enumerated some of the property the registry takes stock of and the benefits to both the lender and the borrower.

 “the registry registers both movable property(motor, inventory, receivables, investment property, business assets, household assets, machinery, financial instruments, goodwill, right etc) and immovable property( building, farm lands, building plots etc) from the lender or interested parties. This is to stimulate the use of movable property, create an avenue for searches on property whether they are encumbered as well as the extent of encumbrance, create avenue to conduct search on property one wants to buy in order to ascertain whether is used as a collateral, help the lender to retrieve property with ease among others” Mr Awuah explained.

 The minimum charge creation amount is Ghc 500 and must be done within 28 days. It cost only Ghc10 for the financial institutions to register a charge on a property at the registry, however any individual can conduct a search on a property at Ghc 5.

Mr Awuah in conclusion however noted the creation and mandate of the Collateral Registry was a response to the tooting problems in Ghana’s credit market which eventually constrained or stifled the flow of credit to the Small and Medium-sized Enterprises(SMEs) in particular and the economy as a whole. 

Some of the hurdles he hinted as

 “Inadequate secured transactions laws and registries for movable assets, high interest rates, hidden charges, non-disclosure of pertinent information and unfair denial of access to credit and discrimination on the part of lenders and high default rate, difficulty in foreclosing collateral resulting in numerous and protracted litigations in courts and substantial rate of non-performing loans”.

 Mr Awuah is optimistic the effective patronage of the Collateral Registry will ensure sanity in the credit system to yield a healthy economy.

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